Elcora plans to partner with Gold Lion to start
HALIFAX, Nova Scotia, Aug. 18, 2022 (GLOBE NEWSWIRE) — ELCORA ADVANCED MATERIALS CORP. (TSX.V:ERA | Frankfurt:ELM | OTCQB – ECORF), (the “Company” Where “Elcora“), announced today that it has signed a letter of intent with Gold Lion Resources Inc. (“Golden Lion”), to start the exploitation of its manganese exploitation license in Morocco.
The manganese mining exploration permit in Morocco (the “Property”) is owned by Ermazon SARL (“Ermazon”), a 100% subsidiary of Elcora. Gold Lion will acquire a 50% interest in the property and Elcora will use the proceeds of the transaction to initiate ore production on the manganese concession once the mining license is granted. Profits from the production will be shared accordingly.
The manganese site is a former French mine that has been in operation for decades, so Elcora will rely on infrastructure, facilities and up to 600 tonnes of raw ore ready for processing. In addition, this development and exploration project will determine whether open pit or underground mining will be used in the future.
Ermazon has applied for the Manganese concession operating license that will strengthen its current strategy for supplying end users with batteries and electric vehicles (EVs).
Manganese is used, among other things, to produce batteries for electric vehicles and other renewable energy applications such as power grid storage batteries. Its status as a battery metal is expected to propel its demand following what experts predict will be a widespread shift to electric vehicles, driven by ambitious climate policy goals and zero-emissions targets.
This metal is an essential link in the lithium-ion battery supply chain. Electrolytic manganese dioxide (EMD) is an enhanced form of manganese that serves as a key ingredient in lithium-ion, alkaline, and zinc-manganese batteries.
The manganese battery supply chain will experience the fastest growth through 2030, with market size increasing by a factor of 9. Spot prices for manganese sulphate* in July and August 2022 hovered between approximately USD 900 and USD 1,050 per ton and are expected to continue to strengthen over the next decade. “Prices are expected to continue to rise in the second half as battery demand is expected to increase. With the manganese sulfate market currently in deficit, prices are expected to rise to support new refinery projects to meet demand for by 2024.” (NEF Bloomberg).
“Market Reports World” monitors the global manganese mining market and it is poised to grow by 5,385.13k tons during the period 2020-2024, growing at a CAGR of 5% during the forecast period.
Terms of the transaction
For a 50% interest in the property, Gold Lion will pay the following consideration in installments to Elcora: (i) a cash payment of $75,000 and the issuance of common shares of Gold Lion (the “Shares”) equivalent to $250,000 for a 25% interest in the property; (ii) a cash payment of $125,000 for a 15% interest in the property; and (iii) a cash payment of $50,000 for a 10% interest in the property.
The Shares will be subject to a minimum holding period of four months and one day from the date of issue.
The transaction is subject to customary closing conditions, including the execution of a definitive agreement and final acceptance by the relevant regulatory authorities.
Troy Grant, CEO of Elcora, said, “Elcora is delighted to partner with Gold Lion to develop the Manganese site. Manganese is a critical metal used in the electric vehicle battery industry and is an important part of our strategy to meet the growing global demand for manganese and vanadium. We look forward to updating investors on our accomplishments and the execution of our strategy to become a leading supplier of battery metals. »
* Manganese sulfate (battery level) today | Minor metals | SMM – China Metals Market
About Elcora Advanced Materials Corp.
Elcora was founded in 2011 and has been structured to become a vertically integrated battery materials company. Elcora can process, refine and produce battery-related minerals and metals. As part of the vertical integration strategy, Elcora has developed a cost effective process to purify high quality battery metals and minerals that are commercially scalable. This combination means that Elcora has the tools and resources to vertically integrate the battery minerals and metals industry.
For more information, visit the company’s website at:
For more information, please contact: Troy Grant, Director, President and CEO, Elcora Advanced Materials Corp., T: +1 902 802-8847
The TSX Venture Exchange accepts no responsibility for the adequacy or accuracy of this release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained herein.
This press release contains certain “forward-looking statements”. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding mineralization and potential reserves, exploration results, and Elcora’s future plans and objectives, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Elcora’s expectations are the exploration risks detailed here and from time to time in Elcora’s filings with securities regulators.
Investors are cautioned that, unless otherwise specified in the filing statement prepared in connection with the transaction, any information published or received regarding the transaction may not be accurate or complete and should not be relied upon.